Increased freight, energy and commodity costs overseas have attracted manufactures to move their production back to the UK.

The EEF said the UK had become "increasingly competitive and efficient" over the past few years. In addition it claimed that one in seven companies has moved its manufacturing operations to the UK from abroad in the past two years.

Companies have majorly been enticed by the cost savings prospect in UK as many were unable to have cost saving up to their expectations, despite of the cheap labor overseas.

Other reasons to return to the UK proved to be that goods from abroad were not meeting the quality standards and the products were not delivered to market pronto.

It found that two thirds opted to re-evaluate their supply business as a result of the global recession. In addition, the weakening pound has been cited as a reason for many relocating business thereby providing a boost to the UK as a competitive place to produce goods.

"As we look ahead to 2010 - where growth is actually going to come from in the UK economy - I think a lot of that is going to be export-driven as world trade picks up and the global economy returns to growth and obviously manufacturing plays a big part in that," the EEF's chief economist Lee Hopley told the BBC.